Canadian Regulator Identifies Key Risks for Financial Sector, Including Non-Bank Institutions and Liquidity

Canada's Office of the Superintendent of Financial Institutions (OSFI) has released its annual risk assessment for 2026-2027. The report highlights significant concerns for the nation's financial institutions, including risks associated with real estate lending, non-bank financial entities, and overall liquidity. OSFI emphasized growing pressures in the housing and mortgage markets, along with an expansion of risks beyond conventional banking. The regulator reiterated its commitment to bolstering the resilience of the financial system amidst an uncertain global landscape.